Unless this is being discussed in a thread I haven't seen, I'm surprised no one is screaming bloody murder about the fact that, for all intents and purposes, the entry point of the Model S just shot up by $10,000.
And that's on top of the $2,500 price increase from a few months ago.
This concerns me a bit because....
Quite often in a premium market like this, people are drawn in by the affordable price and then upsell themselves. I know from personal experience that if you add a low-end version to your product matrix, you might only rarely sell one, but simply having it there boosts your sales!
i agree with this because this is EXACTLY how I found myself with an 85KWh Model S on order. I was drawn in by the beauty and tech, and the (less tax credit) price seemed like something reasonably attainable. Only later did I price myself up to damn near 6 figures.
If the starting point had been
$12,500 more, I likely never would have even considered getting one in the first place. The psychological barrier to entry would simply have been too high.
Really, honestly, if you remove the federal tax credit from the equation (which you should since you have to pay the full price of the car up front anyway), the Model S is now a $70,000 car. At the very very least.
More than anything, I'm afraid that this will be the legacy of today's announcement. The days of being able to tell people it "starts around $50k" are over.